Friday, October 10, 2025 - The International Monetary Fund (IMF) has outlined a series of reforms that President William Ruto’s administration must implement to qualify for a new IMF-supported loan program.
The conditions were issued following a two-week mission in
Kenya, where IMF officials assessed the country’s economic outlook and held
discussions with key stakeholders.
To secure the new facility, the Government must restore
fiscal credibility, ensure debt sustainability, and enhance transparency and
governance across the public sector.
IMF Mission Chief for Kenya, Haimanot Teferra, emphasized
that these reforms are critical to mitigating fiscal, financial, and external
risks that continue to threaten Kenya’s economic stability.
During the visit, the IMF team met with President Ruto,
Treasury Cabinet Secretary John Mbadi, Central Bank Governor Kamau Thugge, and
representatives from Parliament, civil society, private businesses, and
development partners.
“We welcome the Kenyan authorities’ candid engagement and
remain committed to partnering with Kenya for a more robust, sustainable, and
inclusive economic future,” Teferra stated.
The proposed program would replace the previous US$3.6
billion (Ksh465.2 billion) facility, which was terminated in March.
In June, the IMF also conducted a separate review of Kenya’s
anti-corruption framework, focusing on fiscal governance, Central Bank oversight,
and legal safeguards.
The findings will inform Kenya’s readiness for future
funding.
The announcement comes days after the World Bank advised the
Government to consider raising consumption taxes, including VAT and excise
duty, citing a surge in pending bills from Ksh421.6 billion in March to Ksh526
billion by June.
The Kenyan DAILY POST
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